Spain's new venture:
TORONTO, Aug. 16 /CNW/ -- Tucows Inc. (OTC Bulletin Board: TCOW), a leading provider of Internet services to Internet service providers (ISPs) and web hosting companies worldwide, today announced the sale of its search and reference services eLibrary and Encyclopedia.com to Chicago-based Alacritude, LLC, a company investing in activities at the intersection of technology and media. eLibrary, a comprehensive, subscription-based online information resource, and Encyclopedia.com, a basic online research tool, were properties that Tucows acquired as a result of its merger with Infonautics, Inc., in August 2001.
Under the terms of the sale, Alacritude, LLC has acquired all of the assets and has assumed certain liabilities associated with the eLibrary and Encyclopedia.com services. The proceeds of the sale are approximately $1.5 million. Alacritude, which is owned by a Chicago-based group of investors, will maintain the current operations of the online services in the former Infonautics office in King of Prussia, Pennsylvania, and will retain all of Tucows' staff currently employed in King of Prussia.
"These businesses were not core to our ongoing strategy, thus the sale will allow us to devote all of our resources to our Internet services business where we believe our major opportunities lie," said Graham Morris, chief operating officer, Tucows Inc. "The impact on our financial position and results of operations is expected to be immaterial."
"Tucows' success is based upon understanding the unique needs of Internet service providers and web hosting companies, who make up one of the most important distribution channels in the Internet economy," said Elliot Noss, president and chief executive officer, Tucows Inc. "This is another step towards narrowing our focus and taking full advantage of the significant opportunity in providing Internet services like domain registration through our customers."
"Acquiring eLibrary and Encyclopedia.com is an important strategic step for Alacritude," said Patrick Spain, chairman and chief executive officer, Alacritude, LLC. "Our primary interest in these properties is to acquire a platform on which to develop and deliver to individuals the next generation of technology-based online research tools." |
